Elevated inflation and the Federal Reserve’s monetary tightening policy drove the latest leap in mortgage rates this week. Since the beginning of this year, mortgage rates have jumped by 1.2%. The typical home buyer would need to spend $250 more every month to be able to purchase a home, Nadia Evangelou, senior economist and director …
Tag: News
May 06
Some Owners Turn to Cash-Out Refinances
Some homeowners are turning to the equity in their current home to fund their next real estate transaction. But the move isn’t without risks. Most homeowners who bought a home before 2020 have seen rapid appreciation and rising equity in their homes. A cash-out refinance is allowing them to use that equity to help fund their …
May 03
Mortgage Rates Up, Purchase Loans Resilient for Now
Mortgage rates may be moving higher but eager buyers continue to drive loan applications to purchase a home higher as well. Mortgage applications to purchase a home rose 1% last week, the Mortgage Bankers Association reported Wednesday. Home shoppers may be rushing to lock in rates ahead of any further increases. But higher mortgage rates …
May 02
Borrowing Costs Jump as Rates Continue to Increase
For the fourth consecutive week, mortgage rates surged, up more than 90 basis points in one month. Rates have jumped from 3.76% to 4.67% in just March alone, significantly increasing the borrowing costs for buyers, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, wrote for the association’s blog. The …
May 01
ARMs May Appeal to Buyers Seeking Savings
Adjustable-rate mortgages can carry some risks, but as rates rise, more home buyers may consider them. ARMs typically have a lower initial interest rate than 30-year fixed-rate mortgages, but the rate will change after a defined duration. Borrowers then must pay the rate set when their lock period expires, which can be risky if rates …
Apr 30
Mortgage Rates on the Horizon
Mortgage rates have been rising quickly over the past month. A year ago, the 30-year fixed-rate mortgage was 3.18%. Last week, it averaged 4.67%, according to Freddie Mac. Mortgage rates surged more than 90 basis points in March alone. And 5% mortgage rates may be here sooner than many housing analysts had originally predicted. Several leading …
Apr 29
Rising Rates Constrain Buyers’ Budgets
Home buyers this spring are facing a double whammy of rising home prices and mortgage rates. The 30-year fixed-rate mortgage rose to 4.72% this week, from 3.13% when compared to a year ago, Freddie Mac reports. Over the last three months, mortgage rates have risen by 1.5 percentage points, the fastest three-month rise since May …
Apr 26
Buyers Hope to Secure Mortgage Rates
Mortgage rates are quickly rising and home buyers are trying to snatch up low rates before further increases. Rate lock activity jumped in March as the average 30-year fixed-rate mortgage neared 5%, according to Black Knight’s March Originations Market Monitor. “Despite seeing the fastest one-month rise in rates in nearly 13 years, we saw purchase …
Apr 25
Buyers May Need to Seek Homes $40K Cheaper
Inflation is at a 40-year high, and the average consumer is spending $500 more a month on living expenses than a year ago. As such, home buyers may need to lower their budgets to keep pace. House hunters would be smart to search for a home that is about $40,000 cheaper than they would have a …
Apr 24
Mortgage Rates
The 30-year fixed-rate mortgage jumped to a 5% average this week, the first time it’s been that high since 2011. Since the beginning of the year, mortgage rates have jumped by 1.8 percentage points and added about $400 to the average monthly mortgage payment for a median-priced home, Nadia Evangelou, senior economist and director of …
Apr 23
Calmer Market Ahead
The past two years have been quite exceptional for real estate. Home sales boomed. Home prices rose at the fastest rate in modern times. However, such a strong housing market created growing pains. Inventory shrank to its lowest count ever. Even through the recent winter months, the inventory that has made it onto the market …
Apr 22
Mortgage Rates Rise
The 30-year fixed-rate mortgage averaged 5.11% this week, continuing its rapid rise, Freddie Mac reports. The higher borrowing costs are forcing home buyers to expand their budgets. With higher rates and home prices, house hunters need to earn about $25,000 extra if they want to buy the typical home now compared to a year earlier, …
